I heard about this on Marketplace Morning Report yesterday, and thought it was interesting. Kellogg's is shrinking the box size of several of its brands of cereal. They aren't, however, planning on reducing the price accordingly.

Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks will all be about two and a half ounces lighter starting this month. According to the LATimes, the effective price increase is intended to offset rising production costs. The cereal maker wouldn't say of they have plans for similar treatment of other cereals, but I wouldn't be surprised.

I totally understand that prices on everything are going up and that companies have to pass that on to the consumer. I'm just amused by the clever ways in which companies accomplish that.

In an effort to help you eat more cereal eat more healthily, the Kellogg Company is joining the USDA's MyPyramid Corporate Challenge.

The breakfast cereal giant will be promoting (healthy) "eating and physical fitness for families," as well as putting the MyPyramid icon on cereal boxes. They'll also be launching L.A.U.N.C.H. (learning and understanding nutrition choices & health) next fall in elementary and middle schools.

What all this means is hard to say. I couldn't find out what L.A.U.N.C.H. will actually do, or how Kellogg's will actually encourage healthy eating. But the cereal maker did get its start as a maker of (what it considered) health food, and the company does still claim a strong theme of health and wellness in its products. So what do you think: will Kellogg's really do anything or is this a marketing gimmick?

[Via Baking Business]

In 2006, Treehugger.com wrote about the introduction of a line of organic cereals by Kellogg's. The article talked about concerns surrounding "organic" being taken over by a mega-corporation, but decided that ultimately organic of any sort was a good thing.

At the same time, a Rice Krispies-loving consumer (me) discovered Organic Rice Krispies on the shelf at her local supermarket. To say I was excited might be an understatement. I love the Snap, Crackle, and Pop, but I do not love high fructose corn syrup and pesticides - neither of which were found in the organic version. Sure, it was more expensive and sure, they didn't make it in the large box that I preferred due to my frequent cereal consumption, but I was willing to splurge.

Alas, one day, Organic Rice Krispies was no longer on the shelves. I assumed it had to do with lack of consumer interest at my particular store. Today, after much time had passed, I decided to find out where I could buy them by emailling Kellogg's. I will credit them for their speedy response, but it did not make me happy: "This product is no longer marketed by our company, since consumer demand simply does not warrant its continued production. At this time, there are no plans to reintroduce this product."

I didn't specifically ask about any of the other cereals in their organic line, but I assume the worst. Does anyone else miss them?

Back in January we told you about the disappearance of Hydrox Cookies, loved by many but apparently not enough. But fans of the cream-filled cookies take note: they're coming back!

Kellogg is bringing back the cookies in their original recipe, with one big difference: no more trans fats! The cookies will start showing up on store shelves this summer. It's part of the company's way of saying thank you to the hardcore Hydrox fans who wanted the cookies to make a comeback (it's a limited edition, but I'm sure they'll be back for good, right?).

I'm going to get a bag of them and do a taste test with Oreos and settle this "which cookie is better" question once and for all.

Kellogg's is planning to raise prices and decrease package sizes for its ready-to-eat boxed cereals this fall. The cereal giant is expected to increase its marketing budget, or at least maintain it, to make sure that customers keep buying their products in spite of pricing changes. After all, they have to convince the consumer that it is worth paying more money for less cereal for their profits to remain the same.

But is it worth it? The two main reasons that people eat cold cereal are convenience and price. A bowl of cereal takes seconds to prepare and you can get several meals out of one box. But, if given all the time and luxury of a relaxing Sunday, cereal might not be the first thing that breakfasters would reach for. A small price hike, about 2%, might not make a big difference in buying habits, but it will certainly set the stage for other cereal companies to follow in the footsteps of the largest cereal company and could even lead to further changes in pricing. When consumers realize that they are getting less than what they think they're paying for, some might stop buying cereal on a regular basis and the companies could be hurt more in the long run.